Being a real estate agent can be the best job in the world. Isn’t that why you picked this career? It allows you to be your own boss by creating your own hours and deciding how to run and manage your business. If you are willing to put the time and effort in, there are no limits as to how large you can grow your practice and grow your income. That is correct, in theory at least.
The truth is that to achieve that level of success, it takes a lot of hard work. There is a lot of competition, and usually those who are already established have a leg up on those who are early in their career. But, you already know that, as you are living the life. Achieving financial success requires long hours often chasing opportunities and deals that never pan out. Those long hours often mean that instead of spending time with family and friends, weekends or nights are spent finding and working with buyers and sellers. Even when you are with family or friends, often you miss out by having to take that absolutely necessary phone call or answering an endless stream of texts.
Even then, in most cases, to earn commissions you need to make two sales. First, you need to earn the listing from the buyer where you are competing with all the other agents just as hungry for the sale, many of which already have an established name. Once you earn the listing, now you must find a buyer who is willing to offer enough that entices the property owner to part with his home or property. That is not always an easy negotiation, as it can be a highly emotional process for both buyer and seller. Often, you spend a lot of time and effort and walk away with nothing.
These are just some of the reasons that many real estate professionals are branching out and realizing that there is an easier way to use their expertise in real estate and their skills in negotiations to earn a steady stream of income. The best part is that unlike being a realtor and helping others buy and sell property, investment in commercial real estate generates a passive income stream. Imagine making an investment of your time and possibly money at the beginning of a transaction and then reaping a steady stream of income for years or decades afterwards, all the while taking advantage of tax breaks that offset your income. Sound too good to be true? It is not. Many of your colleagues are already taking advantage of investing in commercial real estate.
As a realtor, you already have a decided advantage. You understand real estate and have honed your analytical and negotiation skills. To be a player in commercial real estate, you need to simply understand that commercial property is valued differently than residential property. It is not about the valuation of the commercial building, but the cash flow and income being generated from the property. You don’t have to worry about managing the property, making improvements, or collecting rent payments.
It doesn’t even require you to leave your current occupation as a realtor. You can if you want, but the best part of earning passive income from commercial real estate is that the right property will have enough cash flow that will allow you to hire a professional management firm to handle management of the property, making improvements, or collecting rent payments
Any real estate professional who has already started commercial real estate investing will speak to how much easier it is than selling residential property, and the time invested has more upsides. Instead of living deal-to-deal, find one, invest, and reap the benefits. They will tell you that the best part is that you can easily take the natural advantages you possess and quickly learn the nuances to ensure that each investment you make is optimized to lower risk and increase profits.
That is where Commercial Academy comes in. We have extensive experience helping real estate professionals turn their talents, honed from their time working residential property sales, into becoming commercial real estate investment experts.
If you are interested in learning the possibilities, take the time to speak to one of our coaches. They can share with you how others have made that transition.